Unearned Revenue Balance Sheet Example

Unearned revenue in balance sheet.

Unearned revenue balance sheet example. This would be reported under the liabilities side of balance sheet. In this video on unearned revenue sales on balance sheet here we discuss unearned revenue on balance sheet how its accounting is done along with practical examples. Let s take a short example. Hence unearned revenue would be recorded under short term liabilities alongside trade payables.

The customers do advance payments for the services they expect to be performed within a few months or a year at stretch. Unearned revenue is listed under current liabilities it is part of the total current liabilities as well as total liabilities. Initially the full amount will be recognized as unearned revenue on amazon s balance sheet balance sheet the balance sheet is one of the three fundamental financial. Balance sheet as on 31 03 2018 will show an increase in cash balance by the amount of annual subscription of rs 12000 and unearned income a liability will be created.

The below example shows a more detailed balance sheet. Both sides of the equation must balance.